U.S. stocks lose gains after German bomb scare; oil drops

NEW YORK, Nov 17 (Reuters) - U.S. shares ceded gains on
Tuesday after a soccer match in Germany was called off over
fears of a planned bomb attack, while prices of longer-dated
U.S. Treasuries rose on demand for low-risk government bonds.

Oil prices fell sharply as worries returned about a glut of
supplies, which also undercut equities. The U.S. dollar rose to
a seven-month high as inflation data bolstered expectations of
an impending interest rate hike.

Just days after the deadly attacks in Paris, a soccer game
between Germany and the Netherlands in Hanover, Germany was
called off less than two hours before its start due to what
authorities called the credible threat of an attack with
explosives.

"These situations create uncertainty and in uncertain times
everyone goes to cash," said Mohannad Aama, managing director at
Beam Capital Management LLC in New York.

The Dow Jones industrial average rose 6.49 points, or
0.04 percent, to 17,489.5, the S&P 500 lost 2.75 points,
or 0.13 percent, to 2,050.44 and the Nasdaq Composite
added 1.40 points, or 0.03 percent, to 4,986.02.

Earlier in the day, U.S. stocks had registered strong
increases, fueled by better-than-expected results from retailers
Home Depot and Wal-Mart Stores.

"Overall, there is a macro tailwind for European equities,"
said Lorne Baring, managing director of B Capital Wealth
Management. "The monetary policy of the (European Central Bank)
will continue to weaken the euro versus other major currencies."

Greek stocks surged and bond yields hit their lowest in more
than a year after the country's finance minister said Athens had
reached an agreement with its lenders on financial reforms.

Data on Tuesday showed U.S. consumer prices increased in
October after two straight months of declines, a sign of firming
inflation that supported expectations the Federal Reserve will
raise interest rates next month.

The dollar index, which measures the dollar against a
basket of six major currencies, rose 0.2 percent, although
weaker-than-expected industrial output data pared the
greenback's gains later in the session. The euro lost 0.4
percent against the dollar, hitting a 7-month low.

"I think the market has the mindset that there is almost
nothing at this stage of the game that is going to dissuade the
Fed from going in December," said Lane Newman, director of
foreign exchange at ING Capital Markets in New York.

Benchmark 10-year Treasuries rose 1/32 in price
with a yield of 2.2693 percent. Prices on the 30-year bond
rose 11/32 with a yield of 3.0543 percent.

"There are a lot of reasons to be nervous and for a
flight-to-safety (to bonds)," said Lou Brien, market analyst at
DRW Trading in Chicago.

Oil prices slumped as the global oversupply in crude and
petroleum products returned to focus. Brent crude futures
settled down 99 cents at $43.57 a barrel, touching a
session low at $43.50. U.S. crude futures settled down
$1.07 at $40.67 a barrel.

The declines reversed a crude rally on Monday on security
fears related to Friday's attacks in Paris and France's bombing
of Islamic State targets in Syria in the aftermath.

Gold fell 1.2 percent, heading back around six-year
lows.

Copper prices touched their lowest point in more than six
years as fears about demand in China and a higher dollar fueled
negative sentiment.
(Reporting by Lewis Krauskopf, Additional reporting by Dion
Rabouin, Richard Leong and Barani Krishnan in New York, Noel
Randewich in San Francisco, Abhiram Nandakumar in Bengaluru,
Jemima Kelly and Atul Prakash in London; Editing by Nick
Zieminski and Tom Brown)